AMERICAN FILM DISTRIBUTORS SUFFER SETBACK IN CANADA

A government task force has concluded that films and videotapes should be distributed in Canada by Canadian firms, if necessary through regulations that would push out the major American distributors.

The group, appointed by Communications Minister Marcel Masse, on Tuesday issued a 56-page report calling for establishment of a fund to inject money into the production of Canadian feature films. It also recommended measures to end the integration of companies that it said monopolize the distribution and exhibition of motion pictures.

Movie producer Stephen Roth, co-chairman of the task force, told reporters he doesn’t expect a warm reception for the report within the U.S. film industry, which controls 90% of the Canadian market.

He said the current structure in effect includes Canada as part of the U.S. domestic market for U.S. and almost all foreign film distribution, thus cutting out Canadians. The American distributors will not readily accept any threat to their dominance, Roth said.

Under the task force plan, a Canadian Feature Film Fund would be established and made available to producers who had commitments from a Canadian-owned and controlled distribution company.

The fund would support every phase in the creation and marketing of feature films--from development and production to domestic distribution and foreign sales.